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Louise Maureen Simeon - The Philippine Star
June 28, 2025 | 12:00am
In a memorandum to all government securities eligible dealers released late Thursday, the Bureau of the Treasury said it intends to raise a total of P325 billion from T-bills from July to September.
Philstar.com / Jovannie Lambayan
MANILA, Philippines — The government is set to borrow P325 billion in short-term Treasury bills in the third quarter amid hopes of continued monetary policy easing here and abroad.
In a memorandum to all government securities eligible dealers released late Thursday, the Bureau of the Treasury said it intends to raise a total of P325 billion from T-bills from July to September.
The Treasury, however, has yet to release its borrowing plan for long-term T-bonds for the third quarter.
It will auction off P125 billion in T-bills via the 91, 182 and 364-day tenors in July. Another P100 billion each is targeted for August and September.
The Treasury holds the auction of short-dated T-bills every Monday.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the possible easing of the US Federal Reserve as early as September is a factor. The Fed penciled in a 50-basis-point reduction for the rest of the year.
The economist noted that Fed moves would likely be matched locally by the Bangko Sentral ng Pilipinas.
Last week, the BSP Monetary Board slashed key interest rates by 25 basis points to 5.25 percent on benign inflation outlook and challenging growth prospects.
The BSP will meet on Aug. 28 for its fourth policy review this year.
On the other hand, Ricafort said offsetting risk factors include geopolitical risks especially in the Middle East that could lead to volatility in oil and other commodity prices.
“There are also fiscal and debt concerns in the US amid Trump’s tax plan that could lead to elevated Treasury yields,” he said.
The government borrows heavily from domestic and foreign creditors to finance the country’s budget deficit as it continues to spend more than what it earns.
Sourcing from the domestic market is part of the administration’s debt management strategy and its initiatives to further develop the domestic capital market.
As of April, the country’s outstanding debt settled at its highest level to date of P16.75 trillion.
